Dumb gadgets getting linked, & smart

In the next few years, your car might send you an email that its catalytic converter needs maintenance. The bottle of your prescription medicine might ping your doctor when pills run low. Your refrigerator may display a digital grocery list based on the food you typically buy.

Sound far-fetched? Not really.

Analysts talk about these types of applications for the Internet of Things — a buzzword to describe the trend of more and more previously dumb gadgets getting smarter through low-cost sensors and connections to the Internet.

The Internet of Things was the epicenter of this year’s Consumer Electronics Show in Las Vegas, with connected cars, smartwatches, fitness bands and wireless home devices leading the way. Dozens of companies displayed connected technology, ranging from heart monitors to stereo speakers to door locks to baby clothes with a clip-on activity sensors.

Sony Core smart activity monitor, which tethers to a smartphone app to record daily events, is an early example of an Internet of Things product targeted toward consumers.

Sony Core smart activity monitor, which tethers to a smartphone app to record daily events, is an early example of an Internet of Things product targeted toward consumers.

Sony Core smart activity monitor, which tethers to a smartphone app to record daily events, is an early example of an Internet of Things product targeted toward consumers.

“We have done some research and actually counted all the things that could be connected in the home of the future,” said Hung LeHong, an analyst with industry research firm Gartner. “They number in the hundreds, if you count all the electrical sockets, light fixtures, your pets, your appliances.”

Analysts say it will take a few years to know for sure if the Internet of Things will be widely adopted. While technology hurdles are falling, there are still questions — particularly in the consumer market — about how to make money from connecting these gadgets.

But assuming business models do emerge, the industry is expected to grow fast. ABI Research estimates that the number of independently connected wireless devices will grow from 10 billion in 2013 to 30 billion by 2020.

“The year 2013 is seen by many as the year of the Internet of Everything, but it will still be many years until it reaches its full potential,” said Peter Cooney, an ABI Research practice director. “The next five years will be pivotal in its growth and establishment as a tangible concept to the consumer.”

At January’s Consumer Electronics Show, San Diego-based Qualcomm showed off its AllJoyn technology in a mock-up home that lets connected devices find and talk to each other. The AllJoyn-enabled door lock sends a message to the lights to turn on when it’s opened. Or when a child turns on a tablet computer in the bedroom late at night, a notification flashes on the living room TV screen letting parents know. Qualcomm is working with LG, Panasonic, August SmartLock, LifX and others on the AllJoyn platform.

Intel introduced the Edison platform, which includes computing and wireless connectivity in a tiny package the size of an SD card. Edison is meant to make it easier to connect more devices.

And Google entered the fray last month with its $3.2 billion purchase of Nest Labs, which makes connected thermostats that learn what temperatures users like. The deal, and its high price tag, made clear that the search engine giant is serious about the connected home.

Glen Middleton took the leap into the Internet of Things last year when remodeling his Carlsbad home. He had connected Honeywell thermostats installed for room-by-room temperature control, and added connected smoke detectors, some lights, door locks and security cameras.

Middleton and his wife control the entire system on their smartphones using an AT&T service and app. He suffers from multiple sclerosis and is sensitive to heat.

“For me, unless my wife gets me up, I’m in bed. I’m not able to get up in the middle of the night and go to the thermostat,” he said. “So I just pick up my phone, go to (the app) and dial it in.”

The system, which costs $59 a month, automatically turns on the foyer light when the front door opens. It turns on the kitchen light when the garage door opens. “It is really very convenient and very functional,” Middleton said.

Falling costs for sensors, micro-controllers, memory and wireless radios are persuading more companies to connect devices beyond smartphones and tablets. Putting these components together and designing them into a gadget might cost as little as $35. “You can start to see that for manufacturers, it quickly gets interesting to Internet-enable things,” said LeHong, the Gartner analyst.

LeHong believes the Internet of Things will be adopted first in industry and government, where a clear cost savings often exists. The city of Dubai, for example, placed sensors in trash cans that measured when they were full. So instead of driving a truck around on a regular route, the city sent a truck only when the trash can needed emptying.

The same concept could be used for owners of vending machines, who would save money by only rolling trucks when enough items had run out.

“Our point of view is the consumer wave will come after the enterprise and industrial wave,” LeHong said. “Of course, there is a lot of consumer stuff going on right now. It’s just we see the level of investment happening more aggressively on the enterprise side.”

Consumers are seeing the Internet of Things blossom today in wearable technology, such as fitness bands and smartwatches.

At the Consumer Electronics Show, Sony introduced its Core activity monitor, which tethers to a smartphone app to keep track of not only health information but also events, such as dinner with friends or photos taken. Carlsbad-based Razer debuted the Nabu smart band, which combines features of a smartwatch with a fitness band — with the added benefit of being able to communicate directly with other Nabu devices.

“I would pick wearables and, especially, activity trackers in health and fitness” as the most-consumer-ready Internet of Things products, said Aapo Markkanen, an analyst with ABI Research. “The value is relatively tangible, the price points tend to be affordable, and with products like smart wrist bands, you aren’t held back by long replacement cycles.”

The second area where consumers are likely to see the concept is vehicles. Automakers also are working to bring wider Internet connectivity to vehicles, including high-speed 4G LTE access. Once that happens, they can begin to offer more services in which the car receives and shares information automatically.

Figuring out how to make money from that connectivity is a hurdle — not only with vehicles but with other Internet-connected consumer products. One service that connectivity could bring to vehicle owners is usage-based insurance. Motorists might get lower rates by driving less, maintaining the speed limit, avoiding aggressive acceleration or braking — all things that can be measured in a connected car.

“One of the biggest challenges to the Internet of Things is the business models,” said Jim McGregor, founder of Tirias Research. “What data are important? How can it be utilized, not only by the consumer but by others? Once we figure out those business models, then the Internet of Things enters a phase where it is really ready for mass adoption.”

San Diego's Green Edge Technologies has developed a home energy monitoring system called EdgeHome that let's users see and control their home energy uses remotely

/ Submitted photo

San Diego's Green Edge Technologies has developed a home energy monitoring system called EdgeHome that let's users see and control their home energy uses remotely

San Diego's Green Edge Technologies has developed a home energy monitoring system called EdgeHome that let's users see and control their home energy uses remotely (/ Submitted photo)

Home products — such as appliances and light fixtures — are another area where consumers are seeing more Internet-connected devices. Right now, smart thermostats, which cost about $200 to $400 depending on what they can do, are making inroads.

“Personally, I have one, and I like it a lot,” said Miguel Sanchez, HVAC service department manager with Bill Howe Plumbing, Heating and Air Conditioning in San Diego. “You can monitor the temperature in your home online. You can turn on or off your heat or air conditioning remotely. It works really well for people with vacation rentals. You do save money in the long run.”

San Diego-based Green Edge Technologies recently signed a deal to offer its real-time home energy-use monitoring system called EDGEhome to buyers in four Tri-Pointe Homes communities in Temecula and Irvine. Founded in 2012 by former Motorola and Nokia executives and engineers, Green Edge places wireless sensors in every plug and light fixture, feeding usage data to a central tablet that can be remotely controlled.

“It really gives you the ability to see where you are using energy and control this stuff as a result,” said Chief Executive Scott Steele. “Studies show that people, just by seeing where they use energy, are able to save 10 percent or more.”

The cost to a homeowner in Tri-Pointe’s communities is about $5,000, with no monthly fees. Steele said the system is not complicated for builders to install. Green Edge is targeting the new-home market first, as well as solar installers. It also plans to add other devices, such as thermostats, to its system in the near future.

Today, the Internet of Things lacks standards, so connected devices from different companies often don’t work well together. There also are questions about how to manage all the data generated by Internet-connected devices — and about privacy surrounding who would have access to the data.

But analysts and industry officials think these problems will be solved. Consumers likely will be given the choice to opt-out of data sharing — though companies will offer more services to those who agree to provide the information. Also, Internet of Things companies are forming open-standards trade groups to work though interoperability issues.

So now people need to get their hands on these Internet-connected devices and try them out, said Rob Chandhok, senior vice president of Qualcomm Technologies, a unit of San Diego wireless giant Qualcomm.

“It needs to be experienced by consumers,” he said. “It’s time for you to give three (connected) things to your mom and have them work together. There is not a technical reason why not anymore.”